As Bitcoin proceeds through regulatory phases, Caribbean nations are casting a wide net in the cryptocurrency space. Nations close to the Caribbean like El Salvador are disruptors in and of themselves. The reason being, they are not waiting around for a mass adoption of Bitcoin. Rather they are driving the trend toward widespread acceptance.
Far from a gimmicky ploy, Bitcoin has granted real solutions for impending problems. Problems such as global economy disillusionment and remittance fees arise in areas that are unbanked meaning their money has no backing. Cryptocurrency plays a role by providing a solid and equal playing ground where all can participate, especially important in the Caribbean today.
Caribbean countries symbolize forward-thinking mechanisms and laid-back luxury
Digital wallet apps have emerged mightily in nearby Caribbean countries such as El Salvador.
In El Salvador, the “Nuevas Ideas” collective proposed Bitcoin adoption in 2017. Clearly, this nation wants to address the deficit in electronic payment infrastructure. They have developed a Bitcoin Beach Wallet which is extremely similar to the Satoshi system.
Bitcoin yields several beneficial outcomes for Caribbean countries
Some opportunities that arise with mobile money solutions include employment and financial inclusion.
Mobile money solutions are high speed, high volume, and often complement the existing financial structure. These cryptocurrencies address Caribbean subregion necessities in the areas of technology and innovation. By nature, these solutions decrease reliance on centralized authorities.
Many people have launched the process of jurisdictional arbitrage. This means they are trying to ditch governmental rule over their actions and finances, altogether. Many have applied for a second passport to avoid capital gains taxes on their crypto holdings.
Since Bitcoin is viewed as property, the IRS has begun to ramp up efforts to track digital currency and offshore assets linked to non-compliant taxpayers. In response, many have gravitated toward citizenship by investment programs in the form of international financial centers that act as tax havens.
What does cryptocurrency offer for the Caribbean?
Certainly, Bitcoin in the Caribbean poses quite the disruptive possibility to the current Fiat system. It allows a bidirectional flow to and from economies via peer-to-peer interconnectivity. It recognizes risk and encourages innovation.
“Fiat money relies on the backing of governments to ensure the acceptance of its currency as legal tender. It has value, in part because Governments require that taxes be paid in legal tender, and this ensures that there will always be a demand for it. Money is thus widely considered to be a creation of governments, but the commercial banks also play an important role in the process of money creation.” Shiva Bissessar (U.N. ECLAC Studies & Perspectives)
Cryptocurrencies represent inclusivity and proactive engagement. Some Caribbean (or nearby) countries ripe for cryptocurrency picking are Trinidad & Tobago and Suriname.
These countries possess a competitive advantage due to lower existing energy costs in the region due to thriving hydroelectric plants.
It would behoove several Caribbean nations to consider a mass adoption of cryptocurrencies. The reason being, it embraces the unbanked and rural communities that could use an update to pick up the pace. It would encourage intra-regional trade creating a circular flow that might sweep throughout countries.
Crypto would help disparate economies diversify and stimulate themselves. It might also reduce the cost of remittance fees for international transfers. There is hardly any downside to cryptocurrency usage. Try it out!